Rudd unveils $10.4b stimulus plan

Source The Age

The Federal Government will pump $10.4 billion into the economy in a bid to prevent Australia sliding into a recession.

Prime Minister Kevin Rudd and Treasurer Wayne Swan unveiled the emergency spending plan, which includes pre-Christmas payments of $4.8 billion for pensioners, $3.9 billion in support for families, and $1.5 billion for first-home buyers - delivering benefits to millions of Australians.


- $4.8b down payment to pensioners, payable in December.
- $3.9b in support payments for families.
- $1.5b for first home buyers.
- $187m to create new training positions
- Budget to remain in surplus.

"It's very important to act early and decisively,'' Mr Rudd told a press conference. ''At a time when economies need stimulus support, don't leave it till too late.''

The housing sector is a major beneficiary. The Government will triple to $21,000 the current $7,000 first-home buyers grant for people buying a newly constructed home. Those first-home buyers moving into existing properties will receive a doubling of the allowance to $14,000.

The plan is "designed to support activity in the housing sector and the housing sector is critical to the economy overall," Mr Rudd said.

Opposition Leader Malcolm Turnbull said the Coalition would back the stimulus package.

''It has our bipartisan support,'' Mr Turnbull told a media conference. ''It gives justice to Australia's aged pensioners, in particular, who have been doing it tough.''

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